An evening star has risen at the counter. It is time to book profit at the Lakme counter. The scrip had zoomed from Rs 107 to a peak of Rs 239. Reaction has set in at the counter.Several indicators point to the need to exit the scrip. The stochastic indicator on the daily chart has cut through its trigger line. Even the RSI indicator tells the long-term investors to pack up.
On the weekly chart, Rs 252 is a barrier. Diehards can hold on. But with not much gain from the Rs 239 level, it is better to book profit and get out.
Volumes had been high on Friday and low today. That may tempt you to hold on. But even the Japanese candle pattern has shown the rise of an evening star, which is bearish.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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